Zeneeda Information Technology Private Limited Vs Office of the Commissioner of State Tax (WB) (GSTAT Kolkata)
Summary: The Goods and Services Tax Appellate Tribunal, Kolkata Bench considered an appeal filed by Zeneeda Information Technology Private Limited against the first appellate authority’s order concerning excess input tax credit (ITC) availed under the CGST and SGST Acts. The appellant was engaged in providing IT consultation and support services from its Kolkata office. A demand notice dated 21.03.2024 was issued under Section 73 of the CGST Act, 2017 and the corresponding provision of the WBGST Act, alleging excess ITC and liability for reversal of the excess credit with interest and penalty.
The demand comprised CGST tax of Rs. 7,51,134, interest of Rs. 6,32,573 and penalty of Rs. 75,113.40, together with corresponding SGST amounts. The adjudicating authority confirmed the demand by order dated 10.07.2024. The taxpayer thereafter filed an appeal before the first appellate authority under Section 107 of the WBGST/CGST Acts read with Rule 108.
Before the first appellate authority, the taxpayer contended that the excess ITC had been inadvertently availed but was completely reversed along with applicable interest before issuance of the demand-cum-show cause notice. On that basis, it was submitted that penalty was not payable under Section 73. The first appellate authority, however, upheld the demand, reasoning that interest arose from non-payment of tax within the prescribed period and that penalty was justified because the tax and interest had not been paid within thirty days of the show cause notice.
